Bills: HB660 , HB4845 , HB3902 , HB5396 , HB4615 , HB1825 , HB1403 , HB4336 , HB4585 , HB4371 , HB863 , SB1589 , HB5223 , HB3195 , HB2734

Committee: House Human Services

Keywords: child protective services, adult protective services, caseload limits, call processing goals, child-care licensing, employee workload, reporting requirements, employee caseload limits, protective services, workload management, accountability, Department of Family and Protective Services, employee goals, call processing, child care, human resources, government accountability, Medicaid, provider enrollment, revalidation

Transcript Highlights:

• Now imagine an elderly person who's relying on this power not for the Comfort, but for the life-sustaining
• No power, no help, no hope. The consequences were tragic.
• The reports indicate that 38 people died in and around Harris County during the last power failure.
• Under this bill, senior independent living communities would also be required to maintain backup power
• because of that, as somebody who has lost their child because of that, as somebody who has lost their power

Bills: HB660 , HB4845 , HB3902 , HB5396 , HB4615 , HB1825 , HB1403 , HB4336 , HB4585 , HB4371 , HB863 , SB1589 , HB5223 , HB3195 , HB2734

Committee: House Human Services

Keywords: child protective services, adult protective services, caseload limits, call processing goals, child-care licensing, employee workload, reporting requirements, employee caseload limits, protective services, workload management, accountability, Department of Family and Protective Services, employee goals, call processing, child care, human resources, government accountability, Medicaid, provider enrollment, revalidation

Transcript Highlights:

• In order to qualify, state law must clearly support its powers, duties, and naming conventions.
• The bill does not create a new taxing authority, new powers of eminent domain, or any other expansion
• Members, this is a clarification, not an expansion of powers.
• These are the power sources here.
• Signs, forcing the state to use its power of eminent domain and condemn the sign.

Bills: HB341 , HB791 , HB1564 , HB1695 , HB1722 , HB1729 , HB1772 , HB2003 , HB2954 , HB2989 , HB3084 , HB3134 , HB3135 , HB3309 , HB3611 , HB3679 , HB3727 , HB3832

Committee: House Transportation

Keywords: affordable housing, zoning, development, community support, local regulations, bicycle lanes, traffic collisions, Texas Department of Transportation, study, public safety, bicycles, electric bicycles, scooters, road safety, transportation study, HB 791, Central Catholic High School, San Antonio, specialty license plate, specialty plates

Transcript Highlights:

• some amount of transparency. and accountability for this project that Texas courts have given the power
• If they want the powers of a railroad, then they should have the same responsibility as a railroad.
• I think the issue is the fact that you don't possess it is significant to these Texans who are in power
• But you have the power of the state to take our property. That make sense? I believe so.
• There is no doubt that an 8,500-foot maximum on train length would help alleviate blocked crossings and

Bills: HB341 , HB791 , HB1564 , HB1695 , HB1722 , HB1729 , HB1772 , HB2003 , HB2954 , HB2989 , HB3084 , HB3134 , HB3135 , HB3309 , HB3611 , HB3679 , HB3727 , HB3832

Committee: House Transportation

Keywords: affordable housing, zoning, development, community support, local regulations, bicycle lanes, traffic collisions, Texas Department of Transportation, study, public safety, bicycles, electric bicycles, scooters, road safety, transportation study, HB 791, Central Catholic High School, San Antonio, specialty license plate, specialty plates

Transcript Highlights:

• PUC is asking for money through appropriations for redoing their Power to Choose website.
• Thank you members, and I'm so appreciative of the powerful testimony from Mrs.
• Although many of the customers had power restored within seven days, several didn't have power restored
• This delay in power restoration put the system at risk of a boil water.
• Eventually, the power was restored to our. services.

Bills: HB14 , HB 106 , HB146 , HB267 , HB274 , HB 1127 , HB1359 , HB1393 , HB1584 , HB1640 , HB1710 , HB2152 , HCR101 , HJR8 , HR51

Committee: House State Affairs

Keywords: nuclear energy, advanced reactors, energy security, grant programs, Texas Advanced Nuclear Energy Office, HB 106, oil and gas, Railroad Commission of Texas, overhead electrical lines, electrical distribution system, power line maintenance, administrative penalty, Natural Resources Code, oil and gas lease, well operator, energy safety, utility infrastructure, regulatory compliance, cleanup fund, oil and gas regulation and cleanup fund

Transcript Highlights:

• And we wield enormous market power.
• matter: power reliability, the cost of power, and the timing of power.
• They'd provide cost projections for delivering the needed power.
• “Figure out where can we get the power we need?
• One is the Power Forward program that's being administered by CalSTART in the CEC.

Summary: The committee held an informational hearing on California’s industrial policy and manufacturing, with opening remarks emphasizing the state’s large manufacturing base, the need to retain and scale advanced manufacturing in California, and the tension between economic growth, climate goals, labor standards, permitting, and energy reliability. Senators and witnesses repeatedly noted that California has strong innovation assets, but companies often face uncertainty around regulation, power availability, and the cost of expanding here, leading some to locate manufacturing elsewhere. Senator Wahab highlighted Fremont as a major manufacturing hub and stressed apprenticeship pathways, community college partnerships, and good-paying jobs for both college-educated and non-college workers. California Forward’s Agon Turplin and Jake Higden argued for a durable statewide regional economic development system with ongoing funding, regional strategic plans, and sector-specific roadmaps. They said California Jobs First and related regional planning efforts created useful infrastructure, but the system remains fragmented and one-time funded. Higden focused on “green industrial policy,” especially batteries, bioeconomy, and other clean manufacturing sectors, arguing California often funds R&D but loses the manufacturing scale-up phase to other states. Priyanka Mohanti of the Center for Manufacturing a Green Economy said climate policy must be paired with industrial policy so Californians can actually benefit from the transition through affordable clean products, good jobs, and domestic supply chains. She pointed to international examples such as India, Brazil, and China, and urged tools like public investment, procurement, loan guarantees, and supply-chain planning. Industry witness Josh Richmond, drawing on experience at Bloom Energy and Cy Quantum, said energy and economic development are inseparable and that “time to power” is often decisive in site selection. He argued California needs better coordination among the state, utilities, universities, national labs, and economic development agencies, and that the state should be more proactive and creative in helping strategic industries scale. Committee members discussed the role of high energy costs, regulatory burdens, K-12 education, and cap-and-trade, with Senator Niello raising concerns about business climate, education outcomes, and the cost impacts of climate regulations. Witnesses responded that California should balance regulation with benefits, and that regional coordination and state partnership can help companies navigate red tape and stay in-state. The second panel, from labor, supported a worker-led industrial policy. Sarah Flox of the California Labor Federation said manufacturing jobs can be good jobs only when paired with labor standards, apprenticeship pipelines, and public support tied to worker protections. Tom Hincey of UAW Region 6 said California should use public financing, procurement, off-take agreements, and, where appropriate, public ownership or equity stakes to localize supply chains and create union jobs in batteries, offshore wind, and heat pumps. The final panel featured Fremont economic development director Donovan Lazaro, who said Fremont has become California’s top manufacturing city by preserving industrial land, allowing by-right zoning, reducing permitting delays, and building in-house technical expertise to support advanced manufacturers. He said the city’s approach has helped double its manufacturing workforce and strengthen its tax base. No votes were taken; the hearing was informational and ended with committee members indicating they would continue working on follow-up legislation and coordination efforts.

Transcript Highlights:

• That's another small but powerful team for us in ITSD. It's the mapping team.
• It's because you still need those experts to be able to QA or do quality control on the outputs of that
• How is that solution actually improving the task or improving the output of what you're looking for?
• We talk about power needs. We talk about water. There's a DNR component. There's a D&R component.
• What do you need the output of this system to be?

Committee: House Subcommittee on Appropriations - General Administration

Transcript Highlights:

• And without this, we risk over-relying on the outputs of AI and our bias toward automation as human beings
• sometimes the models can have what's called scope drift, and they can start creating outcomes or outputs
• And so there's an expectation that agencies are monitoring those outputs as well.
• For example, at that 18-inch mark for the power, when water gets above that, it's much more damaging
• The Department of Licensing launched an AI-powered chatbot called Dolly, if you've been to the website

Committee: House Technology, Economic Development, & Veterans

Transcript Highlights:

• Today, worker data is powering the AI economy.
• Mariko Yoshihara on behalf of the California Coalition for Worker Power and the California Employment
• There's probably no more powerful testimony than a personal story that demonstrates how the Fair Chance
• Their employers are using these tools and making workers follow the output.
• . ...filled, put into a black box algorithm that's spitting out an output to a nurse or a health care

Committee: House Labor and Employment

Transcript Highlights:

• This bill will make long-overdue updates to the maximum monthly compensation thresholds community college
• First, it requires health facilities to ensure that no clinical decisions are being made solely by an output
• licensed health care professional is exercising professional judgment in reviewing and approving that output
• First, it requires health facilities to ensure that no clinical decisions are being made solely by an output
• bill ensures that medical records are protected by direct-to-consumer health chatbots and that the output

Transcript Highlights:

• facility, and so as the maximum security facility, we're really working hard to decrease the population
• can we measure success on, how can we increase dollars where we know that we're seeing tremendous output
• This country is too powerful, has too many resources for our citizens to be subjected to this kind of
• With governmental power are serving the public interest.
• Democracy survives in the belief of the governed that those whom they entrust with governmental power

Committee: Joint Joint Committee on Ways and Means

Summary: The hearing was held in Clinton Town Hall as part of the Joint Committee on Ways and Means’ budget review, with local officials welcoming legislators and noting the long agenda of many panels. The main presentation was from Secretary Terrence Reedy of the Executive Office of Public Safety and Security, who outlined the Healey-Driscoll administration’s FY26 proposal for the secretariat, including a $1.7 billion budget and a 7% increase over FY25. He described investments in emergency preparedness, hate-crime prevention, reentry programming, technology modernization, internships, and public safety training, while also noting some reductions driven by resource constraints, including cuts to certain grant programs and administrative costs. Committee members also raised concerns about federal uncertainty and how it could affect state budgets and public safety planning. A major portion of the questioning focused on the Department of Correction. Secretary Reedy and Commissioner Sean Jenkins said the biggest challenges are staffing, officer wellness, facility safety, and contraband—especially K2. They described steps taken at MCI Souza and other facilities, including reducing population at the maximum-security unit, changing management, removing metal products and free weights, improving screening and roll calls, adding a rapid response team, and increasing investigative and technological efforts to combat K2. They also discussed the closure of MCI Concord, saying it was driven by high maintenance costs and staffing needs, and explained that savings are being used to improve staffing patterns and address deferred maintenance over time rather than producing immediate large budget reductions. Members also questioned the budget’s impact on police training and community policing. The administration defended the increase in police academy tuition from $3,200 to $6,000 as reflecting true training costs and said it would still be subsidized by the state, while acknowledging the burden on small municipalities. They said the MPTC is expanding regional training and considering proposals such as Greenfield Community College’s. On community policing, officials emphasized uniform statewide training, de-escalation, and communication skills. The State Police also announced an outside review of the academy by the International Association of Chiefs of Police and said the next class will be split into two smaller groups to improve oversight and allow quicker implementation of recommendations. Other topics included ICE and federal immigration enforcement, with Reedy saying state law prohibits Massachusetts law enforcement from acting in a civil immigration capacity and that no state dollars were used in the Tufts-related ICE operation mentioned by a member. Senators and representatives also raised the upcoming FIFA World Cup, warning that it will require significant public safety resources and likely federal funding. Additional discussion covered restorative justice and juvenile diversion, health care costs in DOC, electronic health records, and the need for more diverse and culturally competent public safety staffing. No votes were taken during the hearing.

Transcript Highlights:

• of Business, Economic Development and Tourism, where he leads the update of the Hawaii 2022 input-output
• What the Hawaii input-output model does is a picture of the Hawaiian...
• If we're going to make this market, what are going to be the output effects?
• I didn't see that listed as being an economic impact, you know, annual output of it as this additional
• So, the output the leakages, right?

Transcript Highlights:

• when power too much power gets on and so backfeeding okay if there's an outlet near you kind of look
• at it there's power going to that outlet from the electrical panel so there's power going that way well
• I'm out of power, and other utilities across the nation are also out of power, and so they're in the
• Firm, dispatchable power protects in-state jobs.
• Again, we're out of power. We don't have transmission.

Bills: HB2272 , HB2285 , HB2296

Committee: House Environment & Energy

Keywords: ski areas, winter sports, terminology update, recreation, regulatory changes, carbon capture, clean energy, environmental regulation, sustainability, green technology, distributed energy, renewable energy, energy resources, energy policy

Transcript Highlights:

• We like the concept, but we are short on power statewide, so every electron helps.
• There's power going to that outlet from the electrical panel, so there's power going that way.
• I'm out of power, and other utilities across the nation are also out of power, and so they're in the
• Firm, dispatchable power protects in-state jobs.
• Again, we're out of power.

Summary: The committee began with member and staff introductions, then held a work session on emissions-intensive trade-exposed facilities (EITEs) under Washington’s Climate Commitment Act. Ecology staff reviewed how cap-and-invest works, explained EITE no-cost allowance allocations, and summarized a new report to the Legislature on policy options for 2035-2050. Ecology recommended continuing no-cost allocations but adjusting them to fit the cap, considering a consignment approach that would require EITEs to invest part of the value of free allowances in decarbonization, and studying additional benchmarking and leakage-mitigation refinements. Quebec officials described their cap-and-trade system, including a consignment model that withholds part of free allocations, holds the value in trust for facilities, and requires technical studies and investment in mitigation projects; they said it has encouraged industrial investment and no business closures. Members asked about facility closures, compliance costs, eligible uses of consigned funds, and adaptation spending. The work session then closed. The committee then heard House Bill 2296, which would expand distributed energy resources by allowing portable plug-in solar devices and meter-mounted devices. The prime sponsor said the bill is intended to lower barriers and startup costs for renters and homeowners who want to electrify or add solar. Supporters, including a nonprofit promoting plug-in solar and a physician group, said the devices could broaden access to clean energy and reduce greenhouse gas and health harms. Utilities, labor, and industry groups opposed the bill as written, citing safety concerns, lack of national electrical code standards, possible backfeeding and fire risks, utility-worker hazards, unclear interconnection rules, and concerns about multifamily housing and small-utility review burdens. Some witnesses said they were open to continued work on the proposal. Next, the committee heard House Bill 2285, which would allow natural gas generation paired with carbon capture, utilization, storage, or mineralization to count toward Clean Energy Transformation Act compliance. The sponsor and supporters argued the bill would provide a “bridge” for firm power, help address reliability and transmission constraints, and support jobs while reducing emissions compared with conventional gas. Opponents said the bill would weaken CETA’s 100% clean electricity target by allowing resources that still emit carbon to qualify, and they questioned whether 75% capture is sufficient. Other testimony raised cost concerns and warned that carbon capture could increase ratepayer costs. The hearing on HB 2285 was later suspended and reopened briefly for additional testimony from Ecology, which said the bill would permanently weaken CETA standards and likely reduce emissions reductions. The committee also briefly received a staff briefing on House Bill 2272, a ski-area terminology bill, and then suspended that hearing to take it up later.

Transcript Highlights:

• TRS retirees who have been retired for one year by July 1, 2026, a one-time increase of 3%, up to a maximum
• have been provided with information that the average increase for Plan 1 people and loss of buying power
• Due to inflation, like others, I have lost over 40% of my purchasing power.
• And it is estimated that for every dollar a pension that is paid, it supports $1.41 in total output to

Summary: The House Appropriations Committee held a public hearing on a series of bills, beginning with House Bill 2689 on Working Connections Child Care. Staff explained that the proposed substitute would keep eligibility at 60% of state median income, eliminate scheduled expansions to 75% and 85%, reduce future subsidy rates from the 85th to the 75th percentile of market, end enhanced regional rates, and change reimbursement rules from prospective enrollment-based payments back to attendance-based payments with a reduced monthly payment after 11 absent days. Child care advocates thanked the committee for removing the proposed cap on the program but opposed the cuts to provider rates and eligibility expansions, warning of harm to families and providers. The committee then heard Engrossed Substitute Senate Bill 5124 on Medicaid network adequacy for post-acute care, with staff noting administrative costs and indeterminate fiscal effects; hospitals supported the bill as a way to reduce discharge delays and reliance on single-case agreements. Senate Bill 5832, which would raise the new motor vehicle arbitration fee from $3 to $6 to support the Lemon Law arbitration program, drew support from the Attorney General’s Office and auto dealers, who said the fee had not been updated since 1995 and the program was underfunded. The committee also heard Substitute Senate Bill 5862, providing a one-time 3% COLA for certain PERS 1 and TRS 1 retirees, with retirees testifying in favor and local government representatives warning about added employer costs. The committee next heard Senate Bill 5922, allowing school districts to transfer money from the Transportation Vehicle Fund to other funds if they reduce their fleet and receive OSPI approval; staff said the bill would mainly add administrative work for OSPI, and no one testified. Substitute Senate Bill 5923 would allow a hospital on an island in Skagit County to qualify as a critical access hospital if federally certified; Island Health testified that the designation would help sustain rural services, and a committee member asked about bed count and Medicaid/charity-care pressures. Senate Bill 5944 would require language access providers to bargain over compensation for missed or canceled appointments and clarify that statutes prevail over conflicting contract terms; WFSE supported the bill, saying it would equalize bargaining rights across agencies. Substitute Senate Bill 5972 would extend interest arbitration rights to correctional employees in city and county jails regardless of population size; labor supported the bill as a retention tool, while cities and counties opposed it, arguing it would raise costs and should include ability-to-pay protections. The committee also heard Senate Bill 5988, authorizing the Department of Health to continue accrediting opioid treatment programs and charge accreditation fees, which DOH said was needed to avoid winding down the program. Later, the committee heard Senate Bill 6151, which would move Ecology fee revenues for landfill methane emissions and laboratory accreditation into dedicated accounts; Ecology supported the bill as improving transparency and reinvesting fees into the programs, and staff said the lab fee shift would be offset by a related budget action. Engrossed Substitute Senate Bill 6194 would pay a rural hospital on a federally recognized Indian reservation, specifically Astria Toppenish, at 150% of the Medicaid fee-for-service rate beginning in 2027; hospital leaders and community members testified that the hospital serves a high-Medicaid, rural, and tribal population and faces persistent losses. Finally, Engrossed Substitute Senate Bill 6302 would direct L&I to investigate possible misclassification of independent contractors on public works projects involving multiple workers doing the same finishing work; labor and business representatives both described it as a negotiated compromise to address underground economy abuses. The committee took no final votes during the hearing and ended by reiterating amendment deadlines for bills scheduled for executive session.

Transcript Highlights:

• For example, power purchase them.
• </c><01:58:01.520><c> Um</c> Seabbrook nuclear power plant. Um Seabbrook nuclear power plant.
• </c><03:35:44.399><c> uh</c> service, your moving power uh service, your moving power uh background,<
• </c><03:48:50.640><c> our</c> what are we going to use to power our what are we going to use to power
• So, we're not paying any resources based on their nameplate or maximum output capability.

Committee: House Science, Technology and Energy

Transcript Highlights:

• She noted that the CEC also has authority related to thermal power plant licensing, small power plant
• While the CEC also has authority related to thermal power plant licensing, small power plant exemptions
• The next slide is powering the South Bay and The next slide is powering the South Bay, and I'll start
• We do have some natural gas power plants that we partner with the Northern California Power Agency on
• This is something that I can't speak for Silicon Valley Power, but other public power entities like SMUD

Summary: The joint informational hearing of the Assembly Committees on Utilities and Energy and Privacy and Consumer Protection focused on the energy impacts of AI and the rapid growth of data centers in California. Chairs and members emphasized that the state wants to support innovation and data center development, but only under terms that protect ratepayers, preserve reliability, and avoid stranded grid costs. Testimony from Lawrence Livermore National Laboratory, the California Energy Commission, the CPUC, CAISO, PG&E, Silicon Valley Power, and the Data Center Coalition described the scale of projected load growth, the uncertainty in forecasting, and the need for coordinated planning across agencies. Dr. Nate Gleason of Lawrence Livermore said data centers are a major and fast-growing share of electricity demand, with planning challenges driven by short construction timelines for data centers versus long lead times for transmission and generation. He urged stochastic planning, co-optimization of generation, storage, and transmission, and greater use of flexible load and demand response. CEC Director Alicia Gutierrez described the CEC’s bottom-up forecasting approach, based on utility energization requests and load profiles, and said California has over 23,000 megawatts of data center capacity requests in the CAISO footprint. CPUC Deputy Executive Director Luan Tesfai outlined recent actions on energization timelines, flexible service connections, PG&E’s Rule 30 tariff, and the commission’s resource planning and transmission permitting work. CAISO’s Neil Miller stressed that large loads affect transmission planning, interconnection, and reliability standards, and said the agency is preparing additional stakeholder work on technical issues. Utility and industry witnesses said California is already seeing substantial data center interest and is building out infrastructure accordingly. PG&E’s Mike Medeiros said the utility has more than 10 gigawatts of data center interest in its territory, has shifted to cluster studies, and is using flexible interconnection tools such as FlexConnect to speed service while protecting reliability. Silicon Valley Power’s Nico Prokos said data centers account for about 55% of its power use and that the city is investing heavily in transmission and local system upgrades to support projected load growth. He also warned that AI loads may be more variable than traditional cloud loads and that backup generation and air quality constraints complicate curtailment strategies. The Data Center Coalition’s Karabonder argued that data centers are also driving efficiency gains and support critical digital services, while urging better forecasting methods, more transparency, and regular backcasting. Members asked about statutory authority, data availability, flexible load, and whether current forecasts are sufficient for long-lead infrastructure planning. Witnesses said California already has authority to pursue flexible service and rate design, and that the CEC and CPUC have access to utility data, though out-year demand remains highly uncertain. CPUC representatives noted an advanced rate design rulemaking and said the commission is opening additional work on ratepayer impacts. No votes were taken during the informational hearing, and the discussion ended with continued questions about how California should structure planning, pricing, and reliability rules as AI-related load grows.

Transcript Highlights:

• To make sure the voters get maximum return on this investment, California must do everything it can to
• The current law says that the management of these forests will be governed by maximum sustained production
• truck traffic in and through communities, but there have been some proposals that actually had, like, output
• But the ultimate power stays here in the Legislature.
• The final power rests in the Legislature, but I think clarifying the powers of our regulatory agencies

Summary: The committee heard several bills, beginning with AB 1938, which would create a voluntary process for local governments to designate California surf reserves through the Ocean Protection Council. The author and supporters, including Save the Waves Coalition, the League of California Cities, and the California State Association of Counties, argued the bill would recognize surf breaks as important natural and economic assets. The bill received a due pass recommendation to Appropriations and passed on a roll call vote, with the measure left on call. The committee also approved the consent calendar, which included AB 1699, AB 1780, AB 1891, AB 1893, and AB 2566. The committee then took up AB 2051, which would convene a coastal resilience permitting working group to develop a roadmap for streamlining permits for coastal resilience projects. The author and supporters from the Bay Area Council, Port of San Francisco, and others said the bill would reduce duplicative permitting delays while preserving environmental protections. One member raised concerns about giving too much authority to the Coastal Commission, but the bill still received a due pass recommendation to Water, Parks and Wildlife and passed on a roll call vote. AB 2494, dealing with the management of demonstration state forests, drew substantial debate. The author said the bill would update outdated 1947-era management goals to emphasize biodiversity, carbon sequestration, wildfire resilience, recreation, research, and tribal co-governance, with strong support from Mendocino County, tribal representatives, and environmental groups. Opponents from the Farm Bureau, California Forestry Association, and others argued it would shift the forests away from sustainable timber production, create funding instability, and invite litigation. After extensive questioning about forest science, old growth, funding, and tribal co-management, the bill received a due pass recommendation to Appropriations and passed on a roll call vote. The committee also approved AB 2483, which would create a permanent certification pathway for formerly incarcerated firefighters who served on Cal Fire hand crews. Supporters said the bill would recognize their training and improve job prospects after release, and it passed unanimously to Public Safety. Finally, AB 1777, the California Clean Skies Act, was heard; it would affirm CARB’s authority to adopt indirect source rules to address pollution from vehicle-heavy facilities such as warehouses and ports. Environmental, health, and labor supporters backed the bill as a tool to protect public health, while trucking, business, port, and industry groups opposed it as costly and overly broad. The bill remained under discussion at the end of the transcript, with members debating whether it clarified existing authority or created new regulatory power.

Transcript Highlights:

• Conclusion: economic history teaches that the great powers emerge from deep regional integration.
• Conclusion, economic history teaches that the great powers emerge from deep regional integration.
• Today, China's manufacturing output is double that of the United States.
• Today, China's manufacturing output is double that of the United States.
• The United States stood as a world economic power versus China 20 years ago and where it stands today

Summary: The joint hearing of the Assembly Select Committee on California-Mexico Bi-National Affairs and the Assembly Economic Development, Growth, and Household Impact Committee focused on the USMCA and how the agreement affects California’s economy, jobs, supply chains, and competitiveness. Opening remarks emphasized California’s heavy trade dependence on Mexico and Canada, the importance of stable trade rules, and concerns that tariffs or uncertainty could harm workers, small businesses, agriculture, logistics, manufacturing, and border communities. Members said the hearing would help inform a future legislative report or resolution on California’s priorities for the agreement’s review. Academic and policy witnesses argued that the USMCA is central to North American economic integration and California’s role in it. Testimony from UC San Diego and CETYS University described California and Mexico as co-producers rather than simple trading partners, highlighting sectors such as medical devices, aerospace, semiconductors, logistics, and advanced manufacturing. Witnesses also warned that the upcoming review could involve not just trade but security and immigration issues, and they urged a stronger, longer-term agreement with more certainty, better border efficiency, and new tools such as specialized technician visas, binational certification standards, innovation zones, and a technology fund. Go-Biz and chamber representatives said USMCA provides predictability, market access, and support for small and medium-sized businesses, while also creating compliance burdens through rules of origin, labor standards, and customs procedures. They pointed to California’s trade missions, export support programs, and state-level cooperation with Mexico and Canada as ways to help firms participate in regional supply chains. Mexican government and business representatives said the agreement is largely functioning well, that Mexico’s public consultation process received nearly 800 submissions and about 2,000 chapter-specific comments, and that many stakeholders favor maintaining or extending USMCA. No formal votes were taken; the committee heard testimony and asked witnesses for follow-up information to inform its report and future recommendations.

Transcript Highlights:

• And we wield enormous market power.
• matter: power reliability, the cost of power, and the timing of power.
• They'd provide cost projections for delivering the needed power.
• And in California... ...cost projections for delivering the needed power.
• But their economy is largely driven, talking about power, by coal.

Summary: The Select Committee on Economic Development and Technological Innovation held a hearing on California’s industrial policy and manufacturing competitiveness. In opening remarks, the chair and Senator Wahab emphasized manufacturing’s role in good jobs, climate leadership, and regional economic growth, while noting barriers such as regulatory uncertainty, energy costs, permitting delays, and the loss of manufacturing jobs over time. They highlighted California Jobs First, workforce development, and the need to keep innovation and manufacturing in-state rather than losing scale-up opportunities to other states. The first panel featured California Forward and the Center for Manufacturing a Green Economy, along with an industry representative. Witnesses argued that California needs a durable, regionally based economic development system with ongoing funding, stronger state coordination, and sector-specific industrial roadmaps. They focused on advanced manufacturing and clean industry, especially batteries, bioeconomy, offshore wind, and heat pumps, and said industrial policy should help bridge the “missing middle” between research and commercial production. The industry witness stressed that power reliability, time to power, and coordinated utility engagement are decisive in site selection, and that California must better align utilities, state agencies, universities, and labs to compete for major projects. Senator Niello raised concerns about California’s business climate, including regulations, labor laws, energy reliability, K–12 education outcomes, and the cost impacts of climate policy. Panelists responded that California can compete by improving coordination, packaging existing state resources, and targeting strategic industries rather than racing to the bottom on taxes or wages. The second panel, from labor organizations, supported a worker-led industrial policy with strong labor and environmental standards, public financing, procurement, and targeted support for manufacturing firms. They cited examples such as union apprenticeship pathways, revolving loan funds, and programs with labor standards, and argued that manufacturing jobs can support both climate goals and middle-class employment. The final panel began with Fremont city officials, who described Fremont as the state’s leading manufacturing city and a model of intentional local policy. They said the city has protected industrial land, streamlined support for manufacturers, and doubled its manufacturing technician workforce over the past decade. The hearing concluded with discussion of how state and local governments can better coordinate to attract and retain manufacturing investment, with members and witnesses agreeing that California has strong assets but needs more proactive, integrated economic development tools.